Longevity: How it Impacts Your Retirement Plans

Life expectancy has increased dramatically over the past century, with a person born in 2010 expected to live to age 79–32 years longer than a person born in 1900. However, for the purpose of retirement planning, the more relevant statistic is not one’s life expectancy at birth, but one’s life expectancy during retirement. We have seen a significant increase in the life expectancy of a 65-year-old over the past generation. In 1980, the average life expectancy for a 65-year-old male was 79.1 years and for a 65-year-old female it was 83.3 years. In 2010, this number increased by over three years to age 82.7 for a male and 85.3 for a female. These figures are averages. It is important to understand that your life expectancy may be longer depending on such factors as family history, lifestyle, and advances in medical technology.

How long will you live? The answer to this question has major implications for your retirement plans as the longer you live, the more money you will need to save for your retirement. While no one knows with absolute certainty how long they will live, it’s important to understand your longevity potential and plan to live longer than previous generations.

The National Retirement Planning Coalition’s Longevity: How It Impacts Your Retirement Plans fact sheet provides points to consider on how longevity may impact your retirement plans.